The Price Has Got To Be Right

Discussion
Jun 14, 2004
George Anderson

By George Anderson


Come on down. If you’re a retailer and that’s what you want consumers to do, then you better sharpen your pencil. Because, when it comes to deciding where to buy, consumers are
saying they’ll only shop if the price is right — especially if your store’s address has a “www” in front of it.


According to Forrester Research, 80 percent of Wal-Mart customers expressed loyalty to the retailer, in contrast to the less than 46 percent of Amazon.com customers who responded
similarly.


Online retailers have increasingly turned to personalization services to create a stronger bond with consumers. Unfortunately, the 5,000 consumers surveyed by Forrester said
retailers wanting their loyalty needed to do one thing — offer the lowest price. In fact, 2,000 of those surveyed said price was at the top of their list for deciding where to
shop.


Much smaller numbers indicated loyalty reward programs and personalization services were important.


Moderator’s Comment: How do retailers without the buying clout of the largest chains remain price competitive in the
current market?

George Anderson – Moderator

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